Updated: 9:41 a.m. ET
Investors had two reactions to Israel’s broad attack on Iran late Thursday: They sold stocks broadly and bought crude oil and gold.
The Dow Jones Industrial Average opened down more than 500 points to 42,460. The Standard & Poor’s 500 Index was off 43 points to 6,002.
The Nasdaq Composite Index had fallen 166 points to 19,494. The tech-concentrated Nasdaq-100 Index was off 147 points to 21,766.
Futures trading had suggested stocks would fall broadly.
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But the levels for all three stock indexes are quite a bit higher than they were Thursday night when the news broke. At that point Dow futures immediately fell more than 600 points.
At last check crude oil was up $5.14 to $73.20, and gold jumped $59.20 to $3,462 per troy ounce.
Michael M. Santiago/Getty Images
The market reaction came after Israeli bombers attacked multiple sites in Iran, including sites where nuclear research was going on. And the attacks killed a number of high-ranking Iranian military officials, including the head of the Revolutionary Guards.
Iran pledged to retaliate against Israel and potentially U.S. assets in the Middle East. At the same time, U.S. President Donald Trump urged Iran to strike a deal “before it is too late.”
President Trump told The Wall Street Journal he’d been given advance warning on the attacks. Today on Truth Social, the president warned Iran to make a deal on nuclear weapons as soon as possible with “the next attacks next already planned attacks being even more brutal.”
Defense stocks higher
While the indexes were lower in premarket trading, defense stocks were rising.
Lockheed Martin (LMT) was up 3% to $483.70 in the premarket. General Dynamics (GD) added 2.2% to $286.
Boeing (BA) , however, was lower in the aftermath of the Air India 787 Dreamliner crash on Thursday that killed 241, all but one of those on board.
Adobe beats estimates; shares drop in premarket
Adobe (ADBE) shares were lower in the premarket after the graphics-software stalwart reported for its fiscal second quarter ended May 30.
The company earned an adjusted $5.06 a share against the $4.98 consensus estimate according to Bloomberg data. Its profit-and-revenue outlook for the August quarter exceeded estimates as well. And it raised its outlook for the fiscal year.
The news service reported that Wall Street investors remain wary of Adobe rivals that are focused on artificial-intelligence-based graphics programs. Adobe has developed its own AI-based system, called Firefly.
